SECURITIES AVAILABLE FOR SALE

The following table summarizes amortized cost and fair value of AFS securities at June 30, 2017 and December 31, 2016, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI. At June 30, 2017 and December 31, 2016 all investment securities were classified as AFS.



(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2017
U.S. Government Agencies	$	7,311	$	23	$	0	$	7,334
States and political subdivisions	159,185		4,640		394		163,431
GSE residential MBSs	103,590		1,186		0		104,776
GSE residential CMOs	113,339		705		1,723		112,321
GSE commercial CMOs	5,141		0		168		4,973
Private label CMOs	3,542		18		20		3,540
Asset-backed	5,418		0		0		5,418
Total debt securities	397,526		6,572		2,305		401,793
Equity securities	50		61		0		111
Totals	$	397,576	$	6,633	$	2,305	$	401,904
December 31, 2016
U.S. Government Agencies	$	39,569	$	147	$	124	$	39,592
States and political subdivisions	163,677		1,782		1,177		164,282
GSE residential MBSs	116,022		928		6		116,944
GSE residential CMOs	72,411		240		3,268		69,383
GSE commercial CMOs	5,148		0		292		4,856
Private label CMOs	5,042		0		36		5,006
Total debt securities	401,869		3,097		4,903		400,063
Equity securities	50		41		0		91
Totals	$	401,919	$	3,138	$	4,903	$	400,154

The following table summarizes AFS securities with unrealized losses at June 30, 2017 and December 31, 2016, aggregated by major security type and length of time in a continuous unrealized loss position.



	Less Than 12 Months					12 Months or More					Total
(Dollars in thousands)	# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses
June 30, 2017
States and political subdivisions	9	$	19,752	$	246	1	$	5,469	$	148	10	$	25,221	$	394
GSE residential CMOs	6	57,391		1,638		2	2,781		85		8	60,172		1,723
GSE commercial CMOs	1	4,973		168		0	0		0		1	4,973		168
Private label CMOs	0	0		0		1	1,268		20		1	1,268		20
Totals	16	$	82,116	$	2,052	4	$	9,518	$	253	20	$	91,634	$	2,305
December 31, 2016
U.S. Government Agencies	6	$	10,710	$	23	2	$	13,531	$	101	8	$	24,241	$	124
States and political subdivisions	25	58,924		610		1	5,075		567		26	63,999		1,177
GSE residential MBSs	1	5,034		6		0	0		0		1	5,034		6
GSE residential CMOs	6	59,534		3,264		1	634		4		7	60,168		3,268
GSE commercial CMOs	1	4,856		292		0	0		0		1	4,856		292
Private label CMOs	0	0		0		3	5,005		36		3	5,005		36
Totals	39	$	139,058	$	4,195	7	$	24,245	$	708	46	$	163,303	$	4,903

U.S. Government Agencies and GSE Securities. The unrealized losses presented in the table above have been caused by a widening of spreads and/or a rise in interest rates from the time these securities were purchased. The contractual terms of these securities do not permit the issuer to settle the securities at a price less than its par value basis. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at June 30, 2017 or at December 31, 2016.

State and Political Subdivisions. The unrealized losses presented in the table above have been caused by a widening of spreads and/or a rise in interest rates from the time these securities were purchased. Management considers the investment rating, the state of the issuer of the security and other credit support in determining whether the security is OTTI. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at June 30, 2017 or at December 31, 2016.

Private Label CMOs. The unrealized losses presented in the table above have been caused by a widening of spreads and/or a rise in interest rates from the time the securities were purchased. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at June 30, 2017 or at December 31, 2016.

The following table summarizes amortized cost and fair value of AFS securities at June 30, 2017 by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.



	Available for Sale
(Dollars in thousands)	Amortized Cost		Fair Value

Due in one year or less	$	15	$	15
Due after one year through five years	11,734		11,990
Due after five years through ten years	59,744		61,267
Due after ten years	95,003		97,493
MBSs and CMOs	225,612		225,610
Asset-backed	5,418		5,418
Total debt securities	397,526		401,793
Equity securities	50		111
	$	397,576	$	401,904

The following table summarizes proceeds from sales of AFS securities and gross gains and gross losses for the three and six months ended March 31, 2017 and 2016.



	Three months ended June 30,				Six months ended June 30,
(Dollars in thousands)	2017		2016		2017		2016

Proceeds from sale of AFS securities	$	23,581	$	0	$	58,653	$	64,743
Gross gains	654		0		807		1,468
Gross losses	0		0		150		48

AFS securities with a fair value of $328,664,000 and $317,282,000 at June 30, 2017 and December 31, 2016 were pledged to secure public funds and for other purposes as required or permitted by law.